Nvidia Invests $2 Billion in Synopsys to Strengthen AI-Powered Chip Design Partnership

Nvidia's $2B Synopsys bet tightens its grip on the chip-design stack | TechCrunch

Nvidia is investing $2 billion into Synopsys, which makes software and components for designing semiconductor chips. The deal deepens their existing partnership at a time when analysts have started to scrutinize increasingly common circular AI-industry deals and warn of a potential bubble. Nvidia said it bought Synopsys shares at $414.79 each as part of a multi-year partnership to integrate Nvidia's AI hardware and computing capabilities into Synopsys's electronic design automation (EDA) and simulation software. The deal will help Synopsys transition its platform from CPU-based computing to GPUs, a shift it hopes will speed up chip-design workflows, per a release. The deal gave Synopsys's stock a lift by signaling long-term growth - a boon after the company recently reported weakness in its IP segment due to U.S. export restrictions and issues at a major customer. For Nvidia, the investment strengthens its influence over Synopsys's widely used EDA tools at a time when chip-design competition is starting to heat up. It also comes after major investors such as SoftBank and Peter Thiel have sold off their Nvidia positions.

Nvidia takes $2 billion stake in Synopsys with expanded computing power partnership

Nvidia on Monday announced it has purchased $2 billion of Synopsys' common stock as part of a strategic partnership to accelerate computing and artificial intelligence engineering solutions. "Our partnership with Synopsys harnesses the power of Nvidia accelerated computing and AI to reimagine engineering and design -- empowering engineers to invent the extraordinary products that will shape our future," Nvidia CEO Jensen Huang said in a release. Synopsys stock jumped about 7% in premarket trading. Nvidia shares were down about 1%.

A Deepening Relationship With Nvidia Is Boosting This Chip Design Software Maker's Stock

The deal is giving Synopsys shares a boost Monday after a tough 2025 so far. Chip design software maker Synopsys is the latest tech firm to see its stock surge on an AI partnership with Nvidia. Shares of Synopsys (SNPS) jumped close to 7% Monday morning before paring back some of their early gains after the company said it's deepening its ties with AI chip darling Nvidia (NVDA), which saw its shares climb around 1% in recent trading. (Read our daily markets coverage here.) Nvidia is making a $2 billion equity investment in Synopsys as part of the deal, which the companies said will advance AI-accelerated tools for chip design and engineering. "No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and NVIDIA," Synopsys CEO Sassine Ghazi said. "Together we will re-engineer engineering and empower innovators everywhere to more efficiently realize their innovations." The Nvidia partnership is giving Synopsys shares a welcome lift after a tough 2025 so far. Despite Monday's gains, the stock is still down about 10% for the year, after taking a big hit in the wake of a weaker-than-expected earnings report in September. Synopsys pointed to a slump in demand for its design IP for the performance, with Ghazi calling the third quarter a "transformational" period shaped by a "challenging geopolitical backdrop." The company said at that time that it was "taking a more conservative view of Q4." Despite reporting quarterly earnings last month that topped analysts' estimates, Nvidia's shares have also been hit recently amid worries that tech giants are overspending on AI infrastructure. Its shares have added about a third of their value in 2025 so far.

Nvidia invests $2 billion in Synopsys to boost AI and chip design partnership

Nvidia and Synopsys have started a new partnership to work together on AI and advanced computing tools. Nvidia also invested money in Synopsys as part of this plan. The two companies want to make faster, smarter technology for future products. This move shows how both firms are growing in the AI and chip design market. Nvidia said it bought $2 billion worth of Synopsys' common stock as part of a new strategic partnership. Nvidia purchased the shares at $414.79 each, according to the company release. The partnership will last several years and aims to speed up compute-heavy applications, boost agentic AI engineering, expand cloud access, and launch joint marketing plans, Nvidia said in the release. Nvidia CEO Jensen Huang said the goal is to combine Nvidia's accelerated computing and AI with Synopsys' tools to "reimagine engineering and design," adding it will help engineers create "extraordinary products that will shape our future", as stated by a CNBC report. Synopsys stock went up 3% after the announcement, while Nvidia shares rose slightly. Nvidia has been one of the biggest winners of the AI boom because it builds GPUs used to train and run AI models. Synopsys provides silicon design and electronic design automation services to help customers build AI-powered products. Synopsys CEO Sassine Ghazi said next-gen intelligent systems need engineering solutions that integrate electronics and physics with AI and computing, stating: "The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute", as noted by CNBC. The deal is not exclusive, meaning both Nvidia and Synopsys can continue working with other companies. Both companies will host a press conference at 10 a.m. ET to talk more about the deal. Reuters also reported that Nvidia's $2 billion investment is part of an expanded multi-year plan to co-develop new AI-powered tools for designing products across many industries. Nvidia has been announcing many new partnerships lately, raising concerns about circular deals in the AI ecosystem. Synopsys shares jumped 7% in premarket trading, while Nvidia stock dipped nearly 2%, according to Reuters market data. Q1. Why did Nvidia invest $2 billion in Synopsys? Nvidia invested to form a long-term partnership with Synopsys to build faster AI, computing tools, and engineering solutions. Q2. How will the Nvidia-Synopsys partnership help AI development? The partnership will combine Nvidia's AI computing power with Synopsys' chip design tools to create new AI-powered products and design systems.

Synopsys Just Got A $2 Billion Boost From NVIDIA -- Here's What Investors Should Know - NVIDIA (NASDAQ:NVDA), Synopsys (NASDAQ:SNPS)

NVIDIA (NASDAQ:NVDA) and Synopsys, Inc. (NASDAQ:SNPS) are stepping up their partnership, a move that could shape how future technologies are designed. The companies are aligning more closely on advanced computing and engineering tools, hinting at broader changes for industries built on complex development cycles. NVIDIA and Synopsys announced Monday that they are broadening their long-standing partnership to push the boundaries of modern engineering and product development. The companies stated that the enhanced collaboration will fuse NVIDIA's advanced GPU computing with Synopsys' next-generation simulation and digital-twin technologies, aiming to ease development bottlenecks and accelerate innovation across industries grappling with increasingly complex design demands. Also Read: Nvidia's CEO Says Why AI Isn't a Bubble -- And His Answer Points to a Trillion-Dollar Computing Revolution Already Underway NVIDIA has invested roughly $2 billion in Synopsys common stock at a purchase price of $414.79 per share to further expand the partnership. The investment builds on the companies' earlier collaborations and establishes a multi-year plan to broaden access to GPU-accelerated engineering tools for design teams across multiple industries. Partnership Targets Engineering Constraints Companies in semiconductors, aerospace, automotive, and other sectors face growing design complexity, higher costs, and pressure to shorten development cycles. NVIDIA's accelerated computing platform will be integrated with Synopsys' design and verification tools to increase simulation speed and support more advanced testing. Also Read: Baidu Unveils 5-Year AI Chip Roadmap To Replace Nvidia in China Integrated AI Tools Synopsys plans to apply NVIDIA's CUDA-X libraries and AI-physics models across a wide set of compute-heavy workloads, including chip design, optical simulation, molecular modeling, and electromagnetic analysis. The firms will also link Synopsys' AgentEngineer system with NVIDIA's Agentic AI platform -- including NIM microservices and the NeMo Agent Toolkit -- to enable automated workflows in electronic design and system simulation. Advancing Digital Twins The companies will expand their work on digital twin technology using NVIDIA's Omniverse and Cosmos platforms, enabling more accurate virtual replicas across industries such as robotics, semiconductor manufacturing, and energy. Digital-twin adoption is also growing in healthcare. In one recent example, L&T Technology Services partnered with NVIDIA to develop AI-driven 3D digital lung models designed to support cancer diagnostics. These digital-twin breakthroughs highlight expanding potential. The partners plan to make GPU-accelerated engineering tools available through cloud platforms and will pursue a joint go-to-market strategy using Synopsys' global sales network. Despite the close alignment, the companies stated that the partnership remains non-exclusive and open to broader industry collaboration. Price Action: NVDA shares are trading 0.17% higher at $177.29, and SNPS is 2.87% higher at $430 at the last check on Monday. Read Next: Nvidia Just Earned A Massive 41% Price Target Boost From Morgan Stanley -- Broadcom Also Raised As AI Frenzy Accelerates Photo: Shutterstock NVDANVIDIA Corp$178.841.04%OverviewSNPSSynopsys Inc$433.633.74%Market News and Data brought to you by Benzinga APIs

Nvidia takes $2 billion stake in chip design software maker Synopsys, shares drop

Nvidia has invested $2 billion in chip design software maker Synopsys, securing a significant stake and expanding a multi-year partnership. This collaboration aims to jointly develop new tools for AI-driven product design across various industries. The deal strengthens Synopsys' position, while Nvidia seeks to leverage its influence in the AI compute market. Nvidia has invested $2 billion in chip design software maker Synopsys as part of an expanded multi-year tie-up to jointly develop new tools for designing products across industries using its artificial intelligence technology. The deal, unveiled on Monday, would make Nvidia the seventh largest shareholder in Synopsys, according to LSEG data, adding to its slew of circular AI partnerships in recent months that have sparked worries of a bubble in the industry. The world's most valuable firm has struck deals ranging from as much as a $100 billion investment in ChatGPT parent OpenAI to a $5 billion stake in Intel. Its stock fell over 1% on Monday, while Synopsys rose 6%. "Nvidia has substantial control of who wins in the AI-driven compute marketplace and it would like to benefit from that impact," D.A. Davidson analyst Gil Luria said. "By partnering more closely with Synopsis it contributes momentum and credibility, and in turn will benefit from the appreciation of Synopsys shares." STRENGTHENING SYNOPSYS' POSITION Nvidia, a Synopsys customer, bought about 4.8 million shares of the company's stock at $414.79 apiece, representing a discount of about 0.8% to the stock's closing price on Friday. The shares are being issued to Nvidia in a private placement, Synopsys disclosed in a regulatory filing. Synopsys will use Nvidia's suite of developer tools and code libraries to work on its applications spanning chip design, physical verification and other electronic design automation (EDA) processes. The investment comes after Synopsys noted weakness in its intellectual property business in September, blaming export restrictions that disrupted business in China and challenges at a major foundry customer - widely considered to be Intel. Monday's tie-up is not exclusive. Synopsys counts AMD as a customer, while Nvidia works with the electronic design automation (EDA) firm's rival Cadence Design. Cadence shares fell more than 1%. (You can now subscribe to our ETMarkets WhatsApp channel)

Nvidia takes $2 billion stake in Synopsys as AI deal spree accelerates

Nvidia has invested $2 billion in chip design software maker Synopsys as part of an expanded multi-year tie-up to jointly develop new tools for designing products across industries using its AI technology. The deal, unveiled by the companies on Monday, adds to Nvidia's slew of new partnerships in the artificial intelligence ecosystem amid concerns of increasingly circular deals. Nvidia has invested $2 billion in chip design software maker Synopsys as part of an expanded multi-year tie-up to jointly develop new tools for designing products across industries using its AI technology. The deal, unveiled by the companies on Monday, adds to Nvidia's slew of new partnerships in the artificial intelligence ecosystem amid concerns of increasingly circular deals. Synopsys shares rose 7% in premarket trading, while those of Nvidia fell nearly 2%. The world's most valuable firm has invested billions of dollars this year in companies linked to the booming AI industry, ranging from deals allowing as much as a $100 billion investment in ChatGPT parent OpenAI to a $5 billion stake in Intel. Nvidia, which is a Synopsys customer, bought the company's common stock at $414.79 per share, the companies said on Monday, representing a discount of about 0.8% to the stock's last closing price on Friday. The partnership is not exclusive, the companies said. Synopsys counts AMD as a customer, while Nvidia works with the electronic design automation (EDA) firm's rival Cadence Design . Cadence shares were slightly lower in premarket trading. Under the partnership, Synopsys will use Nvidia's suite of developer tools and code libraries to work on its applications spanning chip design, physical verification, molecular simulations and other processes involved in EDA. "The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute," Synopsys CEO Sassine Ghazi said.

Synopsys: Nvidia Deal Highlights Undervalued Growth After a Weak 2025 | Investing.com UK

Synopsys Inc. stock surged approximately 8% on December 1, 2025, following the announcement of a $2 billion equity investment from Nvidia Corp. The chip-design software maker's shares jumped to $449.94 in early trading at 8:40 AM EST, representing a significant gain of $31.93 or 7.64% from the previous close of $418.01. This dramatic move comes as the two technology giants unveiled an expanded strategic partnership aimed at revolutionizing engineering and design across multiple industries through accelerated computing and artificial intelligence. Nvidia purchased Synopsys shares at $414.79 each, slightly below Friday's closing price of $418.01, marking a substantial vote of confidence in the chip-design software leader. The investment comes as Synopsys stock had declined nearly 14% year-to-date through Friday's close, presenting what Nvidia apparently viewed as an attractive entry point. This deal follows Nvidia's pattern of strategic investments during the AI boom, including stakes in OpenAI, CoreWeave, and even a $5 billion investment in potential rival Intel Corp. The multi-year collaboration will integrate Nvidia's CUDA accelerated computing platform with Synopsys' market-leading engineering solutions across chip design, physical verification, molecular simulations, and electromagnetic analysis. The partnership specifically targets agentic AI workflows, digital twins through Nvidia Omniverse, and cloud-ready engineering solutions. Both companies emphasized that the arrangement remains non-exclusive, allowing continued partnerships across the broader semiconductor and EDA ecosystem. Synopsys, with a market capitalization of $77.65 billion as of November 28, operates as one of the largest providers of software and services for electronic component design. The company trades at a trailing P/E ratio of 56.49 and forward P/E of 28.25, with analysts maintaining an average price target of $551.04. Recent performance shows the stock underperforming the broader technology sector, down 13.88% year-to-date versus the S&P 500's 16.45% gain, though it has posted a 27.01% return over three years. The Nvidia investment has raised concerns about circular deals that could artificially prop up valuations, as customers who receive Nvidia investments may subsequently purchase more Nvidia chips. However, the strategic rationale appears sound given the growing complexity of developing AI-powered intelligent systems, which demands deeper integration of electronics and physics accelerated by advanced computing capabilities. The partnership positions both companies to capitalize on engineering challenges spanning semiconductor, aerospace, automotive, and industrial sectors, potentially opening new market opportunities through GPU-accelerated simulation at unprecedented speed and scale. *** Looking to start your trading day ahead of the curve?

NVIDIA and Synopsys Expand AI Partnership for Engineering Tools

NVIDIA and Synopsys announced an expanded partnership focused on applying NVIDIA AI and accelerated computing to Synopsys engineering software. The companies said the work is aimed at helping R&D teams in semiconductors, aerospace, automotive, industrial and other sectors manage growing design complexity, development costs and time-to-market pressures by improving design, simulation and verification workflows. NVIDIA also invested $2 billion in Synopsys common stock at $414.79 per share. Joint development to enable future of engineering on accelerated computing The multiyear partnership builds on strong, existing technology collaborations between the companies and includes the following initiatives: Broadly accelerate Synopsys applications: Using NVIDIA CUDA-X libraries and AI physics technologies, Synopsys will further accelerate and optimize its broad portfolio of compute-intensive applications spanning chip design, physical verification, molecular simulations, electromagnetic analysis, optical simulation and more. ?Advance agentic AI engineering: Building on the existing AI collaboration to enable agentic AI workflows, the companies are integrating Synopsys AgentEngineer technology with the NVIDIA agentic AI technology stack ? including NVIDIA NIM microservices, NVIDIA NeMo Agent Toolkit software and NVIDIA Nemotron models ? to enable autonomous design capabilities for electronic design automation and simulation and analysis workflows. ?Connect the physical and digital worlds through digital twins: The companies will collaborate to enable the next generation of virtual design, testing and validation through the use of highly accurate and sophisticated digital twins for industries such as semiconductor, robotics, aerospace, automotive, energy, industrial, healthcare and beyond. These solutions will utilize NVIDIA Omniverse, NVIDIA Cosmos and other technologies. ?Cloud-ready solutions: Synopsys and NVIDIA plan to make the power of accelerated engineering solutions accessible to engineering teams of all sizes by enabling cloud access for GPU-accelerated engineering solutions. ?Develop joint go-to-market initiatives: To drive market adoption, the companies also have agreed to develop joint go-to-market initiatives to broadly reach engineering teams across multiple industries with both on-premise and cloud-ready solutions. This go-to-market effort will utilize Synopsys? global network of thousands of direct sellers and channel partners, building on Synopsys? broad customer base and existing agreement to license, sell and support Omniverse technology embedded in Synopsys simulation solutions.

Nvidia invests $2bn in Synopsys and seals strategic partnership

On Monday Nvidia said that it had taken a $2bn stake in Synopsys, acquiring shares at $414.79 each. The deal is part of a multi-year partnership aimed at accelerating computing capabilities and developing artificial intelligence engineering solutions. Both groups plan to collaborate on optimizing compute-intensive applications, agentic AI engineering, cloud expansion and the rollout of joint commercial initiatives. This strategic tie-up marks a key milestone for Nvidia, which is strengthening its position in advanced electronic design tools, a sector that is critical to the rise of generative AI. Synopsys, in turn, benefits from access to Nvidia's computing power to speed up innovation in its technologies. On news of the agreement, Synopsys shares jumped nearly 7% in premarket trading, while those of Nvidia slipped about 1%.